Cost reductions when unemployed

Fedcas65

Hello,

I'm unemployed and I was wondering why in this country there is zero help.
Let me explain, I can't cut the mortgage, I can't cut the council tax, I can't cut the bills, the max I can do is to remove all the hardly gained health insurances I have (~300 pounds monthly), and if I remove them, I won't be able to get them again due to the recent health developments... Or at least there will be important exclusions.
They'll just provide a small relief for the next months.
I also won't have access to my private health insurance anymore, which is great, this is just gonna eat up any possible money saving operation I perform, I have a few issues to take care and the NHS is useless.

So, I wonder, how do people manage? Do they go to cry to parents? Credit card debt? I don't wanna go there...
I mean, apart from savings, and ton of savings, I don't see a way out, but I'm sure of one thing, most people don't have savings, so how does it work for them??? Is there something I don't know?

I'm also considering self-employed positions as my role is not easy to find (there are also too many applicants every time), I may easily be unemployed for the next 18 months minimum, but I'm totally new to being self-employed and I'm not sure from where to start, regardless, it's something I'm considering as long as I get a job...
I guess that the first step is to open the company , I'm working out the taxes in another thread.

itsthelittlethings

You can get council tax support but yeah unemployment is rough if you have a large mortgage or high rent. Even if not unemployment is rough because basic Universal Credit for living costs is very low.

itsthelittlethings

Realistically this is why you need several months’ money saved if your costs are too high to be covered by benefits.

grumpy_codger

Fedcas65 said:

...
I mean, apart from savings, and ton of savings, I don't see a way out, but I'm sure of one thing, most people don't have savings, so how does it work for them??? Is there something I don't know?

....

I may easily be unemployed for the next 18 months minimum

...

Yes, it's either savings or unemployment/mortgage insurance. I don't know much about the latter, but the emergency fund is normally recommended to cover about 6 months worth or all essential expenses. It's not 18, but being a pessimist I'd say at least 12.

Fedcas65

itsthelittlethings said:

Realistically this is why you need several months’ money saved if your costs are too high to be covered by benefits.

I wouldn't qualify for any benefits, I don't have kids or any other special dependant.

itsthelittlethings

Fedcas65 said:

itsthelittlethings said:

Realistically this is why you need several months’ money saved if your costs are too high to be covered by benefits.

I wouldn't qualify for any benefits, I don't have kids or any other special dependant.

You don’t need dependents to qualify for benefits.

ACG

I took out PHI/Income protection insurance after getting long covid. I was able to get better, but it was a kick up the backside for me to sort it out. 

However, in terms of help...
You can get SMI which is a loan but will help with some of the mortgage. 
If you are unemployed due to health reasons there are benefits. 
There is also jobseekers allowance. 
- There is some help out there, but its not great. 


In terms of self employed, you can either do it as a limited company (more set up costs and faff) or you can go as a sole trader. When I set up my business I went as  sole trader for the first 2-3 years and then went limited. 

Fedcas65

itsthelittlethings said:

Fedcas65 said:

itsthelittlethings said:

Realistically this is why you need several months’ money saved if your costs are too high to be covered by benefits.

I wouldn't qualify for any benefits, I don't have kids or any other special dependant.

You don’t need dependents to qualify for benefits.

That was one way I wanted to mention, but no, I won't qualify for any benefits, it's not because I have the settled status, but it's because they don't exist unless you tell me exactly of what you're talking about .
As far as I know, it's all on my shoulders...
The thing that bothers me the most is that in EU the repossession is 18 months, here is just a few months max and zero payout if unemployed (but also less taxes), there is a huge difference...

ACG said:

I took out PHI/Income protection insurance after getting long covid. I was able to get better, but it was a kick up the backside for me to sort it out. 

However, in terms of help...
You can get SMI which is a loan but will help with some of the mortgage. 
If you are unemployed due to health reasons there are benefits. 
There is also jobseekers allowance. 
- There is some help out there, but its not great. 


In terms of self employed, you can either do it as a limited company (more set up costs and faff) or you can go as a sole trader. When I set up my business I went as  sole trader for the first 2-3 years and then went limited. 

I also have PHI, but in case of unemployment it doesn't pay, it's just in case you fall hill for a long time and can't work, that's not my situation.

SMI? Interesting, the bank only mentioned the mortgage-only-interests, which is basically the same story for me as it's a new mortgage with low deposit, but they certainly won't give me any payment holiday, which is something I didn't know.
This is a good opportunity, it seems there is no particular requirement to qualify, I may be able to save around 400 pounds per month for the time being.

I don't think I qualify for job seeker allowance, but it's very low anyway.

I'm still exploring the self employed option but just to get an income, I don't like the idea very much, I still don't get all the knowledge about it but thanks for your comment.
My sector may be able to pay between 500-800 per day, but I'd count more on the lower side for now...
In theory, it may pay up to 1000 but I don't count on it...

itsthelittlethings

If you’ve been paying National Insurance for two years and have the right to claim benefits you can claim jobseekers.

fatbelly

Each council makes its own rules for council tax support

Fortunately the turn2us calculator will account for that if you put your postcode in

https://benefits-calculator.turn2us.org.uk/

It will also guide you on other benefits and you can put different scenarios in. For example, support for Mortgage Interest may kick in after 3 months of UC

In any event your mortgage lender will have schemes to help and repossession will be a long way down the line. It 's no longer the days of dodgy subprime lenders

itsthelittlethings

You may also be able to claim council tax reduction unless you have too much savings.